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Rhode Island Sues Schilling and Others over 38 Studios Deal

The R.I. Economic Development Corporation filed suit in R.I. Superior Court today against some of those involved in the deal that loaned 38 Studios $75 million in taxpayer money, reports WPRI (thanks VG247). This document offers the full complaint, and this video lays it out further. Here's a portion explaining that part of the problem was the developer not explaining clearly enough they were borrowing this money because they needed money, and another issue is an alleged conflict of interest:

The complaint says 38 Studios officials failed to disclose that the company was "undercapitalized by many millions of dollars" and therefore "was likely to run out of money in 2012." It also warns that EDC board members who approved the deal could be liable themselves if the legal discovery process uncovers evidence that they knew the risks and signed off on the $75 million loan guarantee anyway.

It quotes an email from an unnamed EDC loan analyst who told his bosses: "I don't think I can support a $75 million loan guarantee to any single company in this industry," referring to video games.

The EDC never ordered an independent assessment of whether 38 Studios would be able to finish the game after the board voted to approve the deal on July 26, 2010, even though board members were told the agency would do so, the complaint alleges.

It says Wells Fargo earned nearly $500,000 "in hidden commission from 38 Studios" that were not disclosed to the EDC board at the same time the bank was also supposed to be looking out for the agency's interests.

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21. Re: Out of the Blue Nov 2, 2012, 13:23 Rigs
 
Why whenever I hear something to do with this do I see ION STORM and John Romero sitting on a throne wearing a gaudy gold king's crown and long red cape, holding a large gaudy gold chalice overflowing with bubbly poured from a long-necked bottle held by Stevie 'KillCreek' Case while they both laugh menacingly in a large, long throne room on top of a long, high tower...and from somewhere, out of nothing, I hear...

'You're still my bitch, you know'...

*shudders*

Ah, probably nothing...


=-Rigs-=
 
Avatar 14292
 
'I know what you think you are, what you want us to believe! But I don't buy it! For three years now you've been pulling everyone's strings, getting us to do all the work, and you haven't done a damn thing except stand there and look cryptic.'
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  1. Nov 1, 20:15 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal ldonyo
  2. Nov 1, 20:16 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal ASeven
  3. Nov 1, 20:47 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal .Drifter
  4. Nov 1, 21:38  Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Flatline
  7. Nov 1, 22:12   Re: Rhode Island Sues Schilling and Others over 38 Studios Deal .Drifter
  5. Nov 1, 21:38  Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Prez
  16. Nov 2, 08:48  Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Creston
  6. Nov 1, 21:39 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Panickd
  8. Nov 1, 22:18 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal NewMaxx
  9. Nov 1, 22:48 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Cutter
  10. Nov 1, 23:12  Re: Rhode Island Sues Schilling and Others over 38 Studios Deal NewMaxx
  11. Nov 2, 02:20 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Jivaro
  12. Nov 2, 03:12 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal dj LiTh
  13. Nov 2, 07:55 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal ^Drag0n^
  14. Nov 2, 08:20 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal strong placebo
  15. Nov 2, 08:44 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Creston
  17. Nov 2, 09:01 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal wtf_man
  23. Nov 2, 20:14  Re: Rhode Island Sues Schilling and Others over 38 Studios Deal xXBatmanXx
  18. Nov 2, 09:14 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Verno
  20. Nov 2, 10:57  Re: Rhode Island Sues Schilling and Others over 38 Studios Deal Creston
>> 21. Nov 2, 13:23   Re: Out of the Blue Rigs
  19. Nov 2, 09:21 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal strong placebo
  22. Nov 2, 20:12 Re: Rhode Island Sues Schilling and Others over 38 Studios Deal xXBatmanXx


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